Kentucky Teachers' Retirement System, Frankfort, hired active domestic growth equity managers GE Asset Management to run $600 million in large caps and Wellington Management to handle $300 million in midcaps, and Galliard Capital Management to run $900 million in active domestic core fixed income, said Gary Harbin, executive secretary. Funding for the equity mandates came from a $900 million active domestic large-cap core equity portfolio, and funding for the bond portfolio came from a $900 million active domestic core bond portfolio; both portfolios were managed by INVESCO. The $13.5 billion pension fund issued RFPs in June, as INVESCO's contracts were set to expire and the manager was closing its local office in Kentucky, Mr. Harbin said, noting that the searches were not related to INVESCO's performance. Mr. Harbin wasn't able to say if INVESCO rebid for the portfolios. Becker Burke Associates assisted.
Separately, plan officials may issue an RFP in the next six to 12 months for a manager to run about $150 million in timberland assets, Mr. Harbin said. The board agreed in February to commit $150 million to timber, a first for the system. Funding will come from cash.